According to the report from the Liverpool ECHO, the 20-year-old will undergo his medical on Monday before his proposed move to Liverpool.
The right-back will join the Merseyside club on a two-year loan deal, with an option to make the deal permanent for £5m. However, the eventual fee will be decided on the number of appearances he will make during his time with his new club.
The Reds’ chief executive Ian Ayre flew to Spain to discuss the terms with Atletico Madrid in the signing the talented defender. Manquillo will be Liverpool’s seventh signing of the summer transfer window, after having added Rickie Lambert, Adam Lallana, Emre Can, Lazar Markovic, Divock Origi and Dejav Lovren.
The Premier League club are confident that a decision will be taken regarding the fee and the payment structure soon so that the Spanish defender can complete his loan move to Liverpool.
Arsenal were initially interested in signing Manquillo, but it now looks like Liverpool have marched ahead of their league rivals in signing the talented right-back.
The signing of Manquillo would be good for Brendan Rodgers and his side as the former Swansea boss is looking to build a squad in the ongoing summer transfer window to challenge the title and compete in the Champions League next season.